​State University Recently Announced a Plan to Increase Tuition

question 137

Multiple Choice

​State University recently announced a plan to increase tuition.As president of the student government,you feel obligated to protest.Luckily,before emailing a statement to the board of trustees,you asked your marketing professor to proofread it.From the sentences below,choose the mistake(s) she caught.

• A)​A tuition increase could harm the university by resulting in market suppression.
• B)​A tuition increase could harm the university by resulting in cost recovery.
• C)​If the university would reduce tuition instead of increasing it, this would create a market incentive and boost enrollment.
• D)​We believe the increase is a profit maximization strategy, which is never used by not-for-profit organizations.
• E)​Price changes are never used by not-for-profit organizations to influence their markets.

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Definitions:

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Money placed into a Registered Retirement Savings Plan, intended to serve as retirement savings and provide tax benefits in Canada.

First Contribution

The initial investment or deposit made into a financial instrument or savings account.

Compounded Monthly

The process of calculating interest on an investment monthly and adding it to the principal, resulting in interest earned on the previous interest.

Ordinary Annuity

An annuity in which the payments are made at the end of each payment interval.